Samsung has revealed it is likely to see a 30% drop in profits for the last three months of 2023, thanks to a global slump in the demand for consumer electronics.

According to the BBC, the technology giant estimated that its operating profit dropped to £1.76 billion in the period between October and December, representing a 35% difference compared to the same period in 2022.

Subscribe to Mobile Marketing Magazine

Click here to get the latest marketing news free in your inbox every Thursday

However, the £1.76 billion figure is much less than the £2.22 billion expected by technology analysts.

This comes as the demand for electronics were amplified by the Covid-19 lockdowns where consumers purchased new devices to use at home.

However, memory chip prices fell last year amid a build up of large stock due to the pandemic, alongside, slower sales for devices including mobile phones and laptops.

This resulted in Samsung reporting a 77% drop in profits compared to the same period last year.

At the time, the company said: “We are lowering the production of memory chips by a meaningful level, especially that of products with supply secured.”

The news comes as Samsung announced it will unveil its newest Galaxy phones later this month, offering an “all-new mobile experience powered by AI”.

In a news conference in San Jose, California on 17 January 2024, the telecoms giant is set to launch the latest Galaxy innovations, designed to “transform how you live, connect and create.”